Economics of diode lasers

The authors attempt to shed some light on the issue of laser diode array costs and pricing as viewed from the perspective of a company that has been in the business of manufacturing high power laser diode arrays for over 10 years. It is a fact that the technology and economics of semiconductor manufacturing has learnt itself to substantial laser price reductions in recent years. What, ultimately, will limit these price reductions? It is pointed out that a great deal of faith supports the view that the high power semiconductor laser diode array price/volume market is highly elastic. In fact, markets cited to date for supporting such elasticity have proven elusive. A case can be and is made that the relative lack of price/volume elasticity in the diode array market places a lower limit on the "wished for" pricing often discussed in our technical press